{"id":3969,"date":"2015-11-19T14:11:13","date_gmt":"2015-11-19T08:41:13","guid":{"rendered":"https:\/\/teekhapan.wordpress.com\/?p=3969"},"modified":"2015-11-19T14:11:13","modified_gmt":"2015-11-19T08:41:13","slug":"more-reasons-on-why-swacch-bharat-cess-is-a-bad-idea","status":"publish","type":"post","link":"https:\/\/vivekkaul.com\/2015\/11\/19\/more-reasons-on-why-swacch-bharat-cess-is-a-bad-idea\/","title":{"rendered":"More reasons on why Swacch Bharat cess is a bad idea"},"content":{"rendered":"
<\/a> In today\u2019s column I want to make give more reasons on why the Swacch Bharat cess is a bad idea. Just to recount for readers who hadn\u2019t read the earlier column, on November 6, the Narendra Modi government decided to implement a Swacch Bharat cess. The cess amounts to 0.5% on all services, and has pushed up the effective rate of service tax to 14.5%, from the earlier 14%. The cess has come into effect from November 15, 2015.<\/p>\n Any tax that the central government collects needs to be shared with the state governments. But that isn\u2019t the case with cesses as well as surcharges that it collects. The money raised through cesses as well as surcharges is not shared with the state governments.<\/p>\n In fact, take a look at the accompanying table. In 2013-2014, the cesses and the surcharges collected by the central government amounted to Rs 71,713.7 crore. This formed 8.79% of the total tax revenue remaining with the central government after handing over the share of the state governments.<\/p>\n <\/p>\n
\nIn the November 16 edition of The Daily Reckoning<\/a> I had written a column on the recently implemented Swacch Bharat cess. In this column I had talked about how the Swacch Bharat cess is an example of maximum government.<\/p>\n